HDFC may test Rs 1250, says Ashwani Gujral

Ashwani Gujral of ashwanigujral.com told CNBC-TV18, "I would probably pick any of Gujarat Narmada Valley Fertilizers & Chemicals (GNFC), SKS Microfinance, Biocon and Shriram Transport for the day. The problem is that all of them are up 25-30 percent in the last 10-15 sessions. So now, you are getting into an overextended stock which could correct on you and probably a 5 percent correction would appear fairly large. The only thing you can say is that these are strong stocks. So, enter on all kinds of declines, fertiliser has been moving up for last five-six sessions, even yesterday GNFC was up fairly sharply, you saw what happened with Shriram Transport. Biocon has been running since Rs 500, so all of these stocks have had a fairly strong run up, so probably it is time to consolidate, correct before fresh buying can be advised.""My sense is that HDFC has made some sort of a bottom, and from here whenever good news comes in while it could still remain a laggard, it has ended its decline and is finding consistent support around Rs 1,050. I think in a good market we could easily find the stock around Rs 1,250. The downside risk is low on this stock but definitely not an outperformer. There are many better NBFCs which are doing well particularly the rural focused ones. So if you have to get into outperformance, that is where you have to go," he said.